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This is about the dumbest plan ever. A short term fix, that will only cause long term problems worse then the one's they have now. And funny, the socialist leftist states are demanding it.

Think about what it will do.

They have locked down all the banks right now. No one can access their money so the state can take their 10%.

This hurts every one, even worse the lower income people and those struggling. Right off the bat. It lessons some of the burden the Gov. has right now with their debt, but its only a ban-aid to the greater problem.

But when those banks re-open, the people will rush them demanding their money, not trusting any of the banks, or their Gov. to try this again. This will cause a run on the banks. And more then likely, they won't have the money to cover it. You will see banks collapsing as it did here in our past, and people who were not first in line will likely see any money they did have left in the banks disappear as they collapse. Not to mention possible riots at banks as people can't get their money or furious about losing 10% like this.

This will then ripple to jobs as business's will ether start having calls from desperate banks demanding repayment to survive unable to repay loans, loss in economy activity and an over all worsening of the economic situation.

Then think long term. If people don't trust their banks not to have this happen again. Those banks cant survive, or if they do, loans are very limited with increadable interest rates. Thus making it harder for companies to expand, or even start up. Home loans near impossible, and an iron grip on the economy in general.

If you wanted to slam a nation into a desperate depression and destroy an economy, this is how you do it.

The banks that cannot meet their obligations will end up getting taken over by the state, which is what the leftists want. The elimination of private banking means the elimination of financial privacy and complete government control of the economy. After all, does it matter who owns the factory if the only place that the owner can go to get an expansion loan is the government? They will have more power over the other sectors of the economy than if they had tried to nationalize them, and the beauty of it is that it will be precipitated by a "crisis" in banking that will create the demand for this action.